A Brief Look at the Origins of Lending

When trying to discover the origins of lending you might find yourself looking at a lot of unrelated information that doesn't really tell you what it is that you want to know.

The origins of lending go back to at least biblical times, with mentions of lending even being mentioned in certain places in the Bible. Even with modern banking and lending, the origins of lending can go back several hundred years? all the way to the Middle Ages and before.

The Middle Ages and the Renaissance are likely the best places to begin looking for information on this subject, as these times were when financial records were beginning to be kept in earnest and lending in its modern form was beginning to truly develop.

Lending in the early Middle Ages

If you look at the early Middle Ages to try to discover the origins of lending, you'll find that loans were often more or less one-sided and always afforded a large benefit to the lender.

Landowners and the wealthy would make loans to poorer individuals while charging high interest rates or making the borrower work to pay off the debt? in many cases, the lender would even increase the terms of the loan once is was nearly repaid so that the borrower would have to continue to make payments or work without pay for the lender.

If a borrower was unable to repay their loan they could even be thrown into a debtor's prison, held without fair trial until someone was able to pay off their debt or other arrangements for their release were made.

Lending during the Renaissance

During the Renaissance and late Middle Ages, the origins of lending began to take a turn more toward what lending is today. Individuals known as moneylenders would ply their trade in market squares and other business and merchant venues, setting up a bench known as a "banca" (from which we get the modern English word, "bank") on which they would conduct their transactions.

Several moneylenders might work in the same area, and the competition tended to reduce some of the extravagant interest rates that were created by landowners and other officials in previous centuries? this didn't, however, mean that the trade of the moneylender was completely fair or righteous.

The moneylenders would still strive to make as much of a profit as they could from borrowers, and might go so far as to falsify their records of payments and transactions so as to scam more money out of the less fortunate or uneducated.

Debtor's prisons were popular, and in some areas were very crowded with people who had barely been getting by in the outside world and had little hope of release.

Lending in the modern world

As time has progressed, so have the methods of making and receiving loans? it's easy to see how far things have come since the early origins of lending.

The predecessors of modern banks developed in conjunction with the Industrial Revolution, and in the decades and centuries that followed most major countries worldwide have abolished most types of unfair lending as well as debtor's prisons.

Interest rates at banks, finance companies, and online lenders are controlled by both local and national factors, and modern lenders strive to provide a valuable service to both the public and businesses by providing reasonable interest rates and definite terms.

Lending has grown from a practice of a few individuals looking for profits to a major industry on which the basis of the modern world is built? an example of how from simple origins can come great things.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

Securing Debt Consolidation Secured Loans

If you're like most people, then you've got debt in... Read More

Guide to Unsecured Loans

Outlined below is a guide to unsecured loans. It will... Read More

What is a Student Loan?

Not everyone is aware of what is a student loan?... Read More

Get a Low Rate on a Secured Online Loan

Secured loans have become very popular over recent years, with... Read More

Online Car Loans - Getting a Good Quote Online

Online car loans enable you to get a good quote... Read More

Ways to Find a Cheap Loan

If you're in the process of trying to find a... Read More

Instant Cash Advance Loans - Take Advantage of The Convenience of The Payday Loans Available Online

Cash advance loans not only provide you with instant cash,... Read More

Risk It With A Bridging Loan?

How many times have you been casually going about your... Read More

See What Your Home is Worth

If you thought your home is worth nothing except for... Read More

What is a Tenant Loan?

Ever wondered what is a Tenant Loan? A tenant loan... Read More

Debt Consolidation ? Watch out for Payday Loans

Most any large city has a number of small shops... Read More

The Truth In Lending Act

With a stated objective to help consumers, Congress deemed it... Read More

Federal Debt Consolidation Loans For Students

For American students, the U.S. Government came up with a... Read More

Bad Credit Loans

Obtaining bad credit loans can be a real challenge. If... Read More

A Look at Getting a Bad Credit Personal Loan

Trying to get a bad credit personal loan can be... Read More

Buy Now And Really Pay Later!

With UK personal debt breaking through the £1 Trillion mark... Read More

When is a Commercial Lender not a Commercial Lender?

A Commercial Lender is Not a Commercial Lender When it... Read More

Financial Aid for College Students - Grants

The bad news about attending college is that it costs... Read More

First Time Buyer Mortgage ?Key to your First Home

Living in a rented apartment since long. Ever thought of... Read More

What is a Personal Secured Loan?

A personal secured loan is the generic term for a... Read More

Finding a Loan With Bad Credit

No matter what your credit history is the simple fact... Read More

A Guide to Finding Home Owner Loans

If you're in the process of trying to find home... Read More

SBA Loan: Options, Benefits, and Lenders Part 2 of 2

In this second installment, we will further examine what kinds... Read More

6 Key Points to Evaluate Online Lenders

The internet is teeming with lenders who are vying for... Read More

5% Down Vs. 10% Down - A Comparison

It has always been an issue for home buyers to... Read More

Guide to Personal Secured Loans

Here is a useful guide to personal secured loans. A... Read More

Benefits of a Home Improvement Loan

Some of the many benefits of a Home Improvement Loan... Read More

No Money Down Real Estate - Fund All Your Deals With Private Lending!!

If you invest in real estate, you need cash to... Read More

Zero Zero Financing on Automobiles in Retrospect

Some say that the automobile industry saved the economy during... Read More

Secured Business Loans ? Equipping Your Business Blueprint With Concrete Groundwork

Somebody once said, 'Business is not financial science; it's about... Read More

When the Bank Says NO!

Factoring has been practiced for centuries. The Romans sold promissory... Read More

Why Choose a Homeowner Loan?

Outlined below are some of the reasons for choosing a... Read More

Why Choose a Secured Personal Loan?

Listed below are some of the many reasons why you... Read More